A Look on Germany’s DAX 30 Stock Index
Among the stock market in Europe, the DAX 30 of Germany has been one of the biggest performers in recent years. In August 2016, the German equities have officially entered the bull market after they recovered 20% of their weakness.
Since then, it has maintained its good performance despite rising geopolitical and economic tensions that hounded the following years. In 2017, the DAX 30 registered a double digit gain as it recorded a 13% full-year advancement.
Let’s get to know more about the German stock index, its composition, and some bite to its history.
The Deutscher Aktien Index or commonly known as the DAX 30 is an index which features 30 blue chip companies in Germany that trade under the Frankfurt Stock Exchange.
As it gauges the 30 biggest firms of the country, it largely affect the perception of traders and investors to the condition of German stock market and the economy in general.
So far, the DAX 30 remains as the most stable index in Europe, with 16 of its 30 original publicly traded firms remain existing up to the present time 30 years after they were established.
As of the current time, here are the 30 blue chip companies that make up the German stock market:
|Bayer (9.99%)||Munich Re (3.41%)||Deutsche (1.39%)|
|BASF (9.81%)||Volkswagen Group (3.27%)||Merck (1.16%)|
|Siemens (9.09%)||BMW (3.17%)||Lufthansa (1.06%)|
|SAP (7.57%)||Deutsche Post (2.61%)||Heidelberg Cement(1.05%)|
|Allianz (7.36%)||Adidas (2.48%)||Infineon Technologies(0.98%)|
|Daimler (6.65%)||RWE (1.9%)||Beiersdorf (0.97%)|
|Deutsche Bank (4.67%)||Henkel (1.89%)||ThyssenKrupp (0.82%)|
|Deutsche Telekom(4.02%)||Fresenius (1.85%)||K + S (0.76%)|
|Linde (3.91%)||Fresenius Medical Care(1.69%)||Commerzbank (0.63%)|
|E.ON (3.80%)||Continental (1.46%)||Lanxess (0.60%)|
Among the 30 firms, Alliance, Bayer, BASF, SAP, and Siemens emerge as the top five best performers as they comprised 43% of the index’s market capitalization.
These companies passed through certain requirements before they are listed in the index. The DAX 30 requires a firm to be listed first in the Frankfurt Stock Exchange and must have at least 10% of its shares distributed to its investors.
Every quarter, the members of the German Stock Exchange conducts a meeting to identify which company is excluded and admitted to the DAX 30.
The index have gone a long way since its inception in late 1980s. From a starting value of 1000, the DAX 30 worked its way to reach the 12 000 level it stands now after facing plenty of bankruptcies, acquisitions, and restructurings in the past three decades.
It has first touched the bullish territory back in 2003 and ran for more than 1500 days before taking the back seat during the 2009 financial crisis.
Now the German stock market is on track to surpass the 13000-threshold, or its highest peak on its history.